Maryland health exchange changes IT contractors

Md. health exchange board votes to sever ties with Noridian

The Maryland Health Benefit Exchange has kicked out Noridian as its prime contractor for the troubled health exchange website, and many legislators are also questioning changes to the enrollment numbers.

"In December I set some very clear benchmarks for the Noridian team, and these benchmarks have not been achieved," said Maryland Secretary of Information Technology Isabel FitzGerald at the hearing.

Taking Noridian's place is Optum/QSSI, a Columbia-based company that had been the information technology contractor hired in December on an interim basis and will now take over Noridian's role as prime IT contractor.

The exchange said Optum/QSSI will bring additional IT expertise to the project. Exchange officials said the company will contract with key existing subcontractors to improve and maintain the current technology in the short term.

In a statement, state officials said, "The exchange is preserving all rights to seek damages against Noridian and its subcontractors for problems with the IT system."

The state site had been plagued by 1,538 defects, and although significant progress has been made, glitches remain. The state paid Noridian $65 million for its work, and it faces unpaid invoices of $12.9 million.

In a statement obtained by the 11 News I-Team, Noridian's CEO, Tom McGraw, said, "Throughout the past four months, Noridian has complied with its contractual obligations under tremendous pressure and constant changes by the state. As prime contractor, Noridian has implemented bug fixes, all greatly increasing the functionality of the state-run exchange."

Noridian said it's negotiating the contract termination with the state.

Maryland is now weighing options to go it alone, team up with another state or join the federal exchange.

"What the financial implications are if we move to the federal exchange is who pays for what," questioned Delegate Susan Krebs, R-Carroll and Howard counties.

"It would be a shared approached just like it is in the states that have a partnership now," said Maryland Health Secretary Dr. Joshua Sharfstein.

Some question reworked enrollment numbers

Meanwhile, Senate Minority Leader David Brinkley formally asked in a letter that the state attorney general conduct an investigation into the state's benefit exchange rollout.

Some members of the Joint Oversight Committee formed to get updates on the state system seemed surprised and annoyed Monday that the company hired to do a study to set enrollment benchmarks reworked the numbers, I-Team reporter David Collins said.

State officials said Monday they are lowering their enrollment goal for the new health care exchange from 260,000 to 160,000 residents. Researchers said the original goal was based on flawed data.

"This correction doesn't change any of the challenges we are facing, but it does put the progress we have made in the face of these challenges in a more correct context," Sharfstein said. "One question I've been asked is if this means we're changing our goal. The answer to that is no."

But the adjustment means Maryland has already surpassed its enrollment goal because nearly 190,000 people have signed up.

"It does appear that the goals have changed, and all of a sudden -- boop! -- we've reached success," Brinkley questioned.

The governor signed emergency legislation last month to provide a retroactive bridge to insurance for those having trouble signing up on the troubled exchange, but the results of that bill are a mixed blessing, Collins reported. Only eight people took advantage of it.

Steven Larson, the governor's choice to run the Public Service Commission a few years back, is a government affairs executive with QSSI. QSSI is also a subsidiary of United Health Group, which sells insurance on the exchange. Those things are raising possible conflict of interest questions.

GOOD EVENING EVENING, EVERYONE. WE BEGIN TONIGHT IN ANNAPOLIS WHERE THE MARYLAND HEALTH BENEFIT EXCHANGE HAS TERMINATED ITS CONTRACT WITH NORIDIAN AS THE PRIMAR Y CONTRACTOR FOR THE WEBSITE. NORIDIAN IS REPLACED BY A COLUMBIA-BASED COMPANY. OPTIMUM QSSI IS IN. IN DECEMBER I SET SOME CLEAR BENCHMARKS FOR THE NORIDIAN TEAM AND THESE BENCHMARKS HAVE NOT BEEN ACHIEVED. WE WILL BRING ADDITIONAL CHEESE TO THE PROJECT AND WE WILL IMPROVE AND MAINTAIN THE CURRENT TECHNOLOGY UNDERLYING THE HEALTH CONNECTION IN A SHORT-TERM. THE STATE HIRED OPTIM TO HELP WITH THE EXCHANGE. IT HAD TIES TO GOVERNOR O'MALLEY. STEPHEN LARSON IS A GOVERNMENT AFFAIRS EXECUTIVE. THE COMPANY IS A SUBSIDIARY OF UNITED HEALTH WHICH HAS A IRMA ON THE EXCHANGE RAISING POSSIBLE CONTRACT -- CONFLICT OF INTEREST QUESTIONS. THEY SEEMED SURPRISED AND ANNOYED THAT THE COMPANY HIRED REWORKED THE NUMBERS. THEY HAD GONE FROM A TARGET OF 260,000 DOWN TO 165 DOWN TO 195. THIS DOES NOT CHANGE ANY OF THE CHALLENGES WE ARE FACING. IT DOES PUT THE PROGRESS WE HAVE MADE IN THE FACE OF THESE CHALLENGES IN A MORE CORRECT CONTEST -- CONTENT. DOES THIS MEAN WE ARE CHANGING OUR GOAL AND THE ANSWER TO THAT IS NO. X IT DOES APPEAR THE GOALS HAVE CHANGED AND ALL OF A SUDDEN WE HAVE REACHED SUCCESS. THE STATE IS CONSIDERING OPTIONS. WHETHER TO GO IT ALONE OR CAME UP WITH ANOTHER STATE OR JOIN THE FEDERAL EXCHANGE. THE IMPLICATIONS ARE WHO PAYS FOR WET. IT WOULD BE A SHARED APPROACH LIKE IT IS IN THE STATES THAT HAVE A PARTNERSHIP NOW. PROVIDING A RETROACTIVE RICH FOR INSURANCE FOR THOSE WHO HAVE HAD TROUBLE SIGNING UP HAS HAD MIXED RESULTS. EIGHT PEOPLE SIGNED UP. JUST TODAY SENATE MINORITY LEADER DAVID WRINKLY ASKED THE AG US OFFICE TO USE ITS CONNECTION TO LAUNCH AN INVESTIGATION INTO THE BOSTON